This Week's Stock Ideas

Monday, March 25, 2024

Good morning everyone, and welcome to all who joined over the weekend!

Last week U.S. Equity markets started off down but quickly reversed course after the Federal Reserve’s dovish comments. Not only will they keep rates where they are for now but, they expect three rate cuts of 0.25% each by end of year. So where do we go now? The reality is, there is nothing that points to a pullback nor is there any negative news floating around, but this is when you have to be the most cautious. Quick declines usually catch investors off guard because they come out of nowhere. Something that we observed and found to be very interesting is that Tue and Wed were strong bullish days but volumes were very light. Thur and Fri the price action was minimal but volumes were higher. This type of price action typically occurs at market tops. As for us, we plan to trade smaller share sizes and will book quicker profits until market internals improve.

Check out this week’s ideas.